Restructuring to help co-op restore profitability

Pendleton Grain Growers is making some changes to focus on business needs. Spokesperson Maddee Moore says the cooperative's plans to exit its AG Supply Retail division and Pendleton Automotive Service Center will help maintain profitability.

Pendleton Grain Growers is restructuring, getting out of the retail and automotive business in order to focus on member needs and improve profitability.

The Pendleton, Ore., grain cooperative recently announced restructuring plans, including efforts to sell its six AG Supply Retail division stores in northeastern Oregon and the Pendleton Automotive Service Center.

If those entities don’t sell, the company will consider other exit strategies within the next four to six months, said Maddee Moore, public and member relations manager for the co-op.

The retail stores have served residential customers more than cooperative members, Moore said.

“Financially, they’re just not a viable option for us,” she said. “We do have to focus on our members and where and how they’re best using our cooperative to suit their agricultural business needs.”

The co-op has 1,850 members.

After struggling for several years, the cooperative decided to hone in on where the business thrives, considering ways to increase efficiency for members, Moore said.

According to a co-op press release, the company will focus on core areas of business, including grain, seed, energy, agronomy and fleet maintenance.

“It will allow us more flexibility and to be more viable,” Moore said. “Once we start being able to really turn a profit, that money goes back to our members.”

The restructure allows more financial vitality and ensuring costs are shared across the cooperative, Moore said.

Members with questions or concerns are advised to reach out to board members or contact the office in Pendleton.